Tynwald has voted against transitioning the Steam Packet into a statutory board, opting instead for enhanced Treasury oversight amid a broader review of the sea services agreement.
The decision followed a heated debate on the company’s governance, with members emphasising the need for reliable, affordable, and customer-focused lifeline services.
The motion, led by Jason Moorhouse proposed two models: a statutory board akin to the Manx Utilities Authority (MUA) or strengthened Treasury oversight.
Arms-Length
Mr Moorhouse argued the current framework no longer reflects the government’s ownership since 2018: “In 2018 there was a missed opportunity to reconsider the framework in the light of the new relationship between the steam packet and the government.”
However, Treasury Minister Dr. Allinson opposed the statutory board, citing the success of the arm’s-length approach.
He said: The Council of Ministers is of the view that the the key tenet that the Isle of Man steam Packing Company should be run at arms length remains valid and sees no benefit in moving to a statutory board.
“Moreover, whilst there are no obvious deficiencies in the existing governance and oversight by the Treasury, Council also recognises that the detailed mechanism and key documentation would in all likelihood benefit from a refresh, and welcomes the committee’s suggestion that they are reviewed.”
Backbenchers, including Tim Glover highlighted the absence of consumer representation in proposed working groups saying “the voice of the consumer is absent”.
Feedback
Chris Thomas echoed this, urging direct passenger feedback: “I would like to join with the two previous speakers, both in thanking the committee for its work and also in calling for the next working group, the next committee, to engage real customers, real users of sea services, even more than the committee tried to do as it was constrained by its terms of reference when it was set up, as was pointed out in the debate.”
DoI member Lawrie Hooper confirmed the DoI would lead the review, citing its control over harbours and link spans and pledged to consider consumer input, possibly via Visit Isle of Man or Business Isle of Man, something supported by DfE Minister Tim Johnston.
Good Job
Chief Minister Alf Cannan defended the handling of the 2018 acquisition and praised the Steam Packet’s board for doing a “remarkably good job” adding it must |balance affordability with financial sustainability.”
He noted recent improvements, including 10% fare reductions and free child travel, but warned against full nationalisation warning “it could drive up costs”.
Members agreed to continue with Treasury oversight of the company while the government an the Steam Packet work to review the current Sea Services Agreement.
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